In cryptocurrency trading, effective risk management is the key to success. Traders need to master various order types, among which the market stop-loss order and the stop limit order are two of the most important tools. Both types of orders can automatically execute trades when the asset price reaches a specific level, but they differ fundamentally in execution mechanism and risk management effectiveness.
Market Stop-Loss Order: Pursuing Execution Certainty
A market stop-loss order is a conditional order that combines the stop-loss trigger mechanism with the characteristics of a market order. The core logic of this order is: when the asset price reaches the preset stop-loss price, the order is immediately activated and executed at the current best available market price.
Mechanism of Market Stop-Loss Order
Once a trader sets a market stop-loss order, the order remains in a pending state. As soon as the asset's price reaches the set stop level,